Gerro v. BlockFi Lending CA2/1
BlockFi is a Delaware limited liability company and is licensed as a finance lender and broker by the California Department of Business Oversight.
In September 2019, Gerro obtained two loans from BlockFi secured by bitcoin.
In February 2020, Gerro refinanced the loans, which together totaled $2.275 million.
The parties executed a written loan and security agreement for each transaction. Section 4(d) or 4(e) in each agreement states, “Priority. Lender shall have actual possession of, and a first priority security interest in, the [c]ollateral.” (Bold omitted.)
Section 5(a)(vi) states that the borrower “pledges, assigns, transfers and delivers to Lender, and grants to Lender a continuing and unconditional first priority security interest in all of Borrower’s present and future rights, title and interest in the [collateral, including] . . . [¶] . . . [¶] (vi) all proceeds of the foregoing.”
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